SpareBank 1 Helgeland · OSL:HELG
SpareBank 1 Helgeland — Helgeland Sparebank — H1 2014 Earnings Presentation
61 slides from SpareBank 1 Helgeland's earnings presentation, 2014
Slide 1: Interim report for the 1st half of 2014
Interim report for the 1st half of 2014 En drivkraft for vekst på Helgeland 1
Slide 2: Interim report for the 1st half of 2014 (HSB group)
Interim report for the 1st half of 2014 (HSB group) Main features Strategy process Jan Erik Furunes Profit & Loss Chief Executive Balance Officer Lending Deposits Lisbeth Flågeng Funding Solidity Deputy Chief Executive Summary Officer Appendices En drivkraft for vekst på Helgeland 2
Slide 3: Theme
Theme Main features Strategy process Profit & Loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 3
Slide 4: Main features 1st half year
Main features 1st half year Results Good basic operation – gross profit MNOK 146 (117) • Net interest increased by MNOK 23 • Net commissioins increased by MNOK 6 • Operating cost increased by MNOK 5 • Losses on loans increased by MNOK16 • Return on financial investments increased by MNOK 23 Profitab
Slide 5: Main features 1st half year
Main features 1st half year Lending Reduced 12-month growth1,6 (8,0) % – in line with the Bank’s instruments due to increased capital requirements • Personal market 4,0 (8,9) % • Corporate market -2,7 (6,4) % Deposits Increased 12-month growth 12,5 (8,9) % – deposit coverage 65,9 (59,5) % • Personal
Slide 6: Theme
Theme Main features Strategy process Profit & Loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 6
Slide 7: Helgeland – The most beautiful coastline in Norway
Helgeland – The most beautiful coastline in Norway En drivkraft for vekst på Helgeland 7
Slide 8: HSB – wide knowledge investment
HSB – wide knowledge investment Helgeland Sparebank Helgeland Sparebank Antall underviste elever skoleåret 2013/14 Millionstøtte til forskning og høgskoletilbud siden 2010 Ungdoms- Videregående skole skole Forskning Høgskoletilbud 1.018 elever 185 elever 8,4 mill. kr. 5,2 mill. kr. Knowledge Commitm
Slide 9: HSB – documentet driving force
HSB – documentet driving force The association’s 100 year anniversary: Stories of the bank "Throughout the development of Nova Sea, the company has benefited greatly from working with current Helgeland Sparebank. Spite of difficult times and balancing on the brink of bankruptcy, the bank has contrib
Slide 10: Theme
Theme Main features Strategy process Profit & Loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 10
Slide 11: Profit & Loss
Profit & Loss Helgeland Sparebank Kommentar Profit development (mnok) Historically good result in 2013 300 based only in core operation 266 The impovement from 2011 to 2013 is exactly100 % 201 172 The goal for 2014 is stronger 146 GOP than 2013 150 133 133 Some uncertainties net interest one • Relie
Slide 12: Result
Result Helgeland Sparebank Kommentar Profit development(mnok) and return on equity % Historically good result in 2013 300 based only in core operation 266 The impovement from 2011 to 2013 is exactly100 % 201 172 The goal for 2014 is stronger 146 GOP than 2013 150 133 133 10,7 % Some uncertainties ne
Slide 13: Keyfigures
Keyfigures Helgeland Sparebank Kommentar Keyfigures in % of average BTA Net interest 2% • Improved margin from 2011 • Slight decrease in 2014 – Q2 = Q1 Net provisions • Stable level from 2011 • Increase in 2014 – Q2 > Q1 1% 0% 2009 2010 2011 2012 2013 30.06.14 Gross profit Net interest Net provision
Slide 14: Keyfigures
Keyfigures Helgeland Sparebank Kommentar Keyfigures in % of average BTA Net interest 2% • Improved margin from 2011 • Slight decrease in 2014 – Q2 = Q1 Net provisions • Stable level from 2011 • Increase in 2014 – Q2 > Q1 Operating cost 1% • Droping cost from 2009 • Flattening in 2014 – Q2 < Q1 Losse
Slide 15: Keyfigures
Keyfigures Helgeland Sparebank Kommentar Keyfigures in % of average BTA Net interest 2% • Improved margin from 2011 • Slight decrease in 2014 – Q2 = Q1 Net provisions • Stable level from 2011 • Increase in 2014 – Q2 > Q1 Operating cost 1% • Droping cost from 2009 • Flattening in 2014 – Q2 < Q1 Losse
Slide 16: Profit & Loss
Profit & Loss Helgeland Sparebank (konsern) Profit & loss (MNOK) Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014 Net interest- and credit provision earnings 109 117 118 113 114 Net provision earnings 18 22 20 19 22 Other operatios income 2 1 3 1 1 Ordinary operations cost 59 59 62 62 61 Result basic operati
Slide 17: Net interest
Net interest Helgeland Sparebank Kommentar Development net intr.(mnok.) and % of average BTA Net interest slightly down 150 towards 2014, but level remain unchanged from Q1 to Q2 117 118 114 109 113 Change in net interest is due to 1,82 % 1,79 % • Relief BM involvement 75 1,73 % 1,75 % 1,75 % • Incr
Slide 18: Operating cost
Operating cost Helgeland Sparebank Kommentar Development operating cost (mnok) and % of income Relatively flat cinsts in MNOK 80 towards 2014, but the expense ratio down in Q2. 62 62 61 59 59 Growth in cost first half year • Maximum target 3,5 % • Result 4,1 % 44,7 % 42,2 % 44,6 % Future challenge w
Slide 19: Keyfigures
Keyfigures Helgeland Sparebank Kommentar Keyfigures in % of average BTA Gross profit, net interest, net 0,95 % provisions and finance- Gross prof it investments strenghtened 1,14 % 1,65 % Non growth in operating cost Net interest 1,76 % and some greater losses on loans 0,28 % Net provisions 0,32 % 0
Slide 20: Theme
Theme Main features Strategy process Profit & loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 20
Slide 21: Total Asset
Total Asset Helgeland Sparebank Kommentar BTA (MNOK) Cause of lower total assets is relief 30 000 BM involvement 25 985 26 257 24 594 22 802 20 160 18 376 15 000 0 2009 2010 2011 2012 2013 30.06.14 Total Asset En drivkraft for vekst på Helgeland 21
Slide 22: Total Asset
Total Asset Helgeland Sparebank Kommentar BTA whereby lending (MNOK) Cause of lower total assets is relief 30 000 BM involvement 25 985 26 257 24 594 Lending 22 802 20 824 • 1. half year 20,8 (20,5) bn. NOK 20 160 • 12 mnth growth 332 MNOK. 18 376 • 6 mnth growth 116 MNOK 15 000 0 2009 2010 2011 201
Slide 23: Total Asset
Total Asset Helgeland Sparebank Kommentar BTA whereby lending and deposits (MNOK) Cause of lower total assets is relief 30.000 BM involvement 25.985 26.257 24.594 Lending 22.802 20.824 • 1. half year 20,8 (20,5) bn. NOK 20.160 • 12 mnth growth 332 MNOK. 18.376 • 6 mnth growth 116 MNOK. 13.721 Deposi
Slide 24: Balance sheet
Balance sheet Helgeland Sparebank Kommentar Balance allocation in% of BTA Strong deposit growth has redused the neet for funding 79,8 % Lending Unweighted equity in the balance 79,3 % sheet are strenghtened 17,4 % Liquidity buf f er 17,7 % 47,5 % Deposits 52,3 % 42,4 % Funding 36,9 % 7,2 % Equity 7,
Slide 25: Theme
Theme Main features Strategy process Profit & Loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 25
Slide 26: Credit growth
Credit growth Helgeland Sparebank Kommentar 12-month credit growth Reduced lending growth in line with the Bank’s instruments due to higher capital requirements • 12 mnth growth 1,6 (8,0) % • 6 mnth growth 0,6 (3,3) % 5,5 % 1,6 % 2009 2010 2011 2012 2013 30.06.14 HSB Helgeland totalt Statistic Norwa
Slide 27: Credit growth
Credit growth Helgeland Sparebank Kommentar 12-month credit growth Reduced lending growth in line with the Bank’s instruments due to higher capital PM BM Helgeland Norway 65,8 % 34,2 % 84,2 % 15,8 % requirements • 12 mnth growth 1,6 (8,0) % • 6 mnth growth 0,6 (3,3) % PM-share • Minimum target 60 %
Slide 28: Credit growth BM and PM
Credit growth BM and PM Helgeland Sparebank Helgeland Sparebank 12-month credit growth retail market 12-month credit growth personal market 20 % 20 % 15 % 15 % 10 % 10 % 5% 5% 0% 0% -5 % -5 % 2009 2010 2011 2012 2013 30.06.14 2009 2010 2011 2012 2013 30.06.14 HSB Helgeland corp. Statistic Norway cor
Slide 29: Lending BM
Lending BM Helgeland Sparebank Kommentar Lending distributed in sector Well-diversified loan portfolio 12,5 % in BM and very loyal Real estate 12,7 % customers. 6,3 % Farming and f orestry Lending to BM constituting 7,1 6,3 % (7,3) bn NOK 4,5 % Construction and power 4,2 % 3,8 % Fishery and aquacult
Slide 30: Lending BM
Lending BM Helgeland Sparebank Kommentar Lending distributed in sector Well-diversified loan portfolio 12,5 % in BM and very loyal Real estate 12,7 % customers. 6,3 % Farming and f orestry Lending to BM constituting 7,1 6,3 % (7,3) bn NOK 4,5 % Construction and power 4,2 % Food production consosting
Slide 31: Net defaultet and com. Exp. To loss
Net defaultet and com. Exp. To loss Helgeland Sparebank Kommentar Net defaulted and com. exp. to loss Still good quality on portfolio 200 Net non-performing and 150 doubtful loans as % of gross loan falling since 2009 100 Net non-performing and doubtful loans as % of gross loans declining since the
Slide 32: Theme
Theme Main features Strategy process Profit & Loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 32
Slide 33: Deposit growth
Deposit growth Helgeland Sparebank Kommentar 12-month deposit growth Very good deposit growth • 12 mnth growrh 12,5 (8,9) % • 6 mnth growth 5,6 (8,8) % 12,5 % 5,5 % 2009 2010 2011 2012 2013 30.06.14 HSB total Helgeland Statistic total Norway En drivkraft for vekst på Helgeland 33
Slide 34: Deposit growth
Deposit growth Helgeland Sparebank Kommentar 12-month deposit growth Very good deposit growth • 12 mnth growrh 12,5 (8,9) % • 6 mnth growth 5,6 (8,8) % PM BM Helgeland Norway 63,0 % 37,0 % 91,9 % 8,1 % PM-share • Result 63,0 (65,4) % 12,5 % Helgeland-share • Result 91,9 (91,3) % 5,5 % Deposit covera
Slide 35: Deposit BM and PM
Deposit BM and PM Helgeland Sparebank Helgeland Sparebank 12-month deposit growth for businesses 12-moth deposit growth for households 35 % 20 % 30 % 15 % 25 % 20 % 10 % 15 % 10 % 5% 5% 0% 0% -5 % -5 % 2009 2010 2011 2012 2013 30.06.14 2009 2010 2011 2012 2013 30.06.14 HSB Helgeland Corp. Statistic
Slide 36: Deposit BM
Deposit BM Helgeland Sparebank Kommentar Customer deposits Well diversified deposit Municipalities 8,5 % portfolio in BM 12,1 % Transport and services 5,9 % Deposits from BM constitutes 6,0 % 5,1 (4,2) bn NOK Construction and power 4,8 % 4,9 % Real estate 3,7 % 3,6 % Trade, hotel and f orestry 2,8 %
Slide 37: Deposit BM
Deposit BM Helgeland Sparebank Kommentar Customer deposits Well diversified deposit Municipalities 8,5 % portfolio in BM 12,1 % Transport and services 5,9 % Deposits from BM constitutes 6,0 % 5,1 (4,2) bn NOK Construction and power 4,8 % 4,9 % Deposit from municipalties Real estate 3,7 % 3,6 % const
Slide 38: Theme
Theme Main features Strategy process Profit & Loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 38
Slide 39: Liquidity buffers
Liquidity buffers Helgeland Sparebank Kommentar Securities distributed in sectors Liquidity buffers constitute 4.7 22 % (4.5) bn NOK – equal to 17.7 CB 1 31 % (17.4) % of BTA 32 % Finance, Norway 26 % Buffer capital consists of cash, Government 16 % deposits in NB / banks and 20 % interest-bearing s
Slide 40: Funding
Funding Helgeland Sparebank Kommentar Funding development (MNOK) Deposits is the main funding 30 000 source The Bank’s mortgage company rated Aaa – bonds will contimue to be the focus area 15 000 12 989 13 721 9 883 10 429 11 211 9 100 0 2009 2010 2011 2012 2013 30.06.14 Deposits Swap agreement Seni
Slide 41: Funding
Funding Helgeland Sparebank Kommentar Maturity of loans (MNOK) Strong and long-term funding 2 500 Increased duration 2,5 (2,3) 2 000 and longer term of bonds 500 900 1 500 630 285 1 000 1 500 1 400 1 200 1 200 400 500 700 400 300 0 2014 2015 2016 2017 2018 2019 2020 Senior CB En drivkraft for vekst
Slide 42: Helgeland Boligkreditt AS
Helgeland Boligkreditt AS Helgeland Sparebank Kommentar LTV-allocation 30.06.14 Total LTV 52 (52) % 1-40 26 % The cover pool • Eligible loans 4.188 (4.935) MNOK 41-50 15 % • Deposits 225 (240) MNOK • Coverage 33 (26) % 51-60 21 % Bonds 3,3 bn NOK (of which 0,3 in the parent bank’s 61-70 24 % ownersh
Slide 43: Theme
Theme Main features Strategy process Profit & Loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 43
Slide 44: Capital adequacy
Capital adequacy Helgeland Sparebank Kommentar Development capital adequacy Capital adequacy 18 % • Capital adequacy 12,0 (11,3) % • Core capital 13,6 (12,9) % 16 % • Core tier one15,7 (15,0) % 2,1 % 2,1 % The Group is on schedule with the 14 % strengthening of capital adequacy in 1,6 % 1,6 % relati
Slide 45: HELG – 20 largest owners
HELG – 20 largest owners Parent bank Per 30. 06. 14 Numbers % s hare Numbers % s hare Sparebankstiftelsen Helgeland 6 599 598 35,3 % Verdipapirfondet Eika utbytte 317 656 1,7 % MP Pensjon PK 1 032 203 5,5 % Lamholmen AS 300 364 1,6 % USB AG, London Branc A/C 1 000 000 5,3 % Holberg Norge Verdipapirf
Slide 46: ECC developement og Liquidity HELG
ECC developement og Liquidity HELG The good price development has continued into Q3 2014 Sales in HELG increased from 0.9 million certificates in 2012 to 6.1 million certificates in 2013, of which 2.5 million was from Sparebankstiftelsen Helgeland in November. Further divestment from Sparebankstifte
Slide 47: Theme
Theme Main features Strategy process Profit & Loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 47
Slide 48: Priorities and prospects
Priorities and prospects Profitability and solvency Purposeful work with the bank's strategy and capital plan succeeded in 2013 and continued in 2014 Priority is continued profitability and solvency Result The Bank expects continued solid core operations • Moderate decrease in net interest- relief B
Slide 49: Priorities and prospects
Priorities and prospects Helgeland region Helgeland is characterized by a stable and versatile labor market with a combination of solid export companies and major government agencies • Most export industries in metals, mining and seafood have a relatively high capacity utilization and more faces als
Slide 50: Thank you for your attention!
Thank you for your attention! A DRIVING FORCE FOR GROWTH En drivkraft for vekst på Helgeland
Slide 51: Theme
Theme RANA ALSTAHAUG Main features Strategy process VEFSN BRØNNØY Profit & Loss Balance Lending Deposits Funding Solidity Summary Appendices En drivkraft for vekst på Helgeland 51
Slide 52: Helgeland – rich in natural resources
Helgeland – rich in natural resources En drivkraft for vekst på Helgeland 52
Slide 53: Helgeland – increased value added
Helgeland – increased value added North-Norway Noth-Norway Corporate related revenue in % 2012 Oil related revenue(MNOK) 70 % 1 600 1 431 1 311 1 359 55 % 45 % 879 800 701 736 666 35 % 490 411 307 17 % 0 Helgeland Salten Of oten, Lof oten and Troms Finnmark Vesterålen 0% Nordland Helgeland Troms/Fin
Slide 54: Helgeland – less vulnerable
Helgeland – less vulnerable Helgeland Helgeland Unemployment development House price movements per sqm villas and apartments 1 600 80 000 40 000 1 200 65 000 30 000 800 50 000 20 000 400 35 000 10 000 2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013 Helgeland Norway (right axis) Helgeland
Slide 55: HSB – only non-aligned bank
HSB – only non-aligned bank En drivkraft for vekst på Helgeland 55
Slide 56: HSB – solid market position
HSB – solid market position Helgeland Helgeland Marketshare in % PM 2013 Share of loans % BM 2013 DNB Services 27 % 15% Food HSB 28 % 50 % SB 1 NN Real Estate Other 14 % 36 % Industry 9% 21 % Marketshare The lending ratio HSB has a market share of 50% in the retail market and about 60% HSB has a sol
Slide 57: HSB – digital focusing and employee satisfaction
HSB – digital focusing and employee satisfaction Helgeland Sparebank Helgeland Sparebank Digital Channel Development Satisfaction index 2012 (TNS Gallup) 1 200 000 Public sector 60 910 489 Production Companies 59 785 571 686 362 719 305 Services 58 600 000 Trading 56 Other Businesses 71 Average (50.
Slide 58: A driving force for growth on Helgeland
A driving force for growth on Helgeland Norway’s 12th largest savings bank of 108 banks – 15 offices in 13 municipalities in the Helgeland region Bank total assets of NOK 26 billion and a market share of 50% • An independent regional bank with no alliances and quoted on the stock exchange - The on
Slide 59: Management and organisational structure
Management and organisational structure Board of directors Chief Executive Officer Assistant and GM Helgeland Jan Erik Furunes Internat auditor Boligkreditt AS Marit Jakobsen Brit Søfting Deputy CEO and Chief Executive, Chief Investments Chief Business Chief Human Acting Chief Chief Risk Chief Execu
Slide 60: Business development and ownership
Business development and ownership Board Styre of directors Chief Executive Officer Assistant and GM Helgeland Jan Erik Furunes Internat auditor Boligkreditt AS Marit Jakobsen Brit Søfting Deputy CEO and Chief Executive, Chief Investments Chief Business Chief Human Acting Chief Chief Risk Chief Exec
Slide 61: Contact information
Contact information Head office Board Postal address Postboks 68, 8601 Mo i Rana Thore Michalsen, Chair Visiting address Jernbanegata 15, 8622 Mo i Rana Ove Brattbakk, Deputy Chair Phone 75 11 90 00 Gislaug Øygarden Web www.hsb.no Monica Skjellstad Organization number 937904029 Stein Andre Herigstad